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3 Top Growth Stocks to Buy in September

3 Top Growth Stocks to Buy in September

Posted On September 20, 2019 2:37 pm
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There are plenty of publicly traded companies that have lots of potential to grow their businesses and reward their investors. However, it’s just a fact that not all of them will be able to deliver on that potential over the long term.

This uncertainty — along with the volatility that often comes with investing in growth stocks — can leave some investors wary of getting started with these types of stocks. If that’s you, then here are three companies that not only have lots of potential to keep growing, but are likely to end up as great investments for years to come.

Here’s why investors should consider HubSpot (NYSE:HUBS)Shopify (NYSE:SHOP), and Okta (NASDAQ:OKTA).

1. HubSpot

HubSpot is as a cloud-based marketing platform that helps businesses create online content, send emails, find new client leads, and manage their overall marketing strategy.

HubSpot’s business is built on the freemium model, which gives its users access to a suite of online services completely free, while providing a more comprehensive list of additional features and services for a fee. So far, this model has worked very well for the company.

In the most recent quarter, HubSpot’s sales skyrocketed 33% thanks to the company’s impressive growth from its subscription segment. Subscription revenue accounts for 95% of the company’s total sales, and in the second quarter, this segment increased 34% year over year. Rising revenue and subscription sales are a very good indicator that HubSpot’s customers like the company’s products so much that they have no problem converting from a free user to a paying one.

Additionally, HubSpot’s overall customer base is growing. HubSpot ended the second quarter with about 65,000 customers, an impressive 35% increase from the year-ago quarter. And it doesn’t appear that the company is slowing down any time soon. HubSpot’s management expects the company’s sales to jump 28% in the third quarter and is continually building out its international sales as well, which should help bring continued growth for the company’s top line.

2. Shopify 

Amazon may seem like the only e-commerce game in town, but investors need to pay attention to what Shopify is doing in this space. The company provides a platform to businesses of all sizes to sell their online goods and services.

In the most recent quarter, Shopify increased its sales by 48% year over year and finished out the quarter with about 800,000 merchants on its platform. The company makes its money from its merchant solutions business (which is comprised of payment transactions, fees, and hardware sales) and its subscription solutions (which is driven primarily by subscriptions to the company’s platform). In the second quarter, merchant solutions sales popped 56%, and subscription solutions increased by 38%.

Aside from that impressive growth, the company is also expanding new services, like Shopify Plus, which gives large companies access to services specific to major brands. Shopify Plus now accounts for 26% of the company’s monthly recurring revenue, up from 23% in the year-ago quarter.

If you’re wondering if there’s any room left for Shopify to grow beyond how much it already has, just consider that the global e-commerce market will be worth $4.8 trillion by 2021, up from $2.8 trillion last year…

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